Some of the credible players in India’s real estate has reinvented itself in order to comprehend, plan and implement innovative ways to stay ahead during this pandemic challenge. Strong emphasis on building credibility, financial strength, generating demand and fresh perspective has fueled the growth of the Indian real estate sector. Together with the government’s support and meticulous planning, the Indian real estate sector is set to see an uptake in the coming months.
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Here is Why the Indian Housing Sector Continues to Emerge Stronger as We Move Ahead:
Sustained Sales Growth Signal Recovery:
Post-June 2020, enquires for residential sales have steadily improved and are rebounding to pre-COVID-19 levels. There has been an increased demand from Non-Resident Indians (NRIs) in addition to end users who have been the key buyers. The work-from-home culture has made homebuyers who are living in rented accommodation realize the importance of having their own homes. Therefore, the real estate developers are cautiously optimistic about the recovery and hoping the sector to be back on track in the next few quarters.
Trusted Developers Preferred By Homebuyers:
Prospective homebuyers have bestowed their trust in real estate brands that showcase transparent and ethical dealings. The advent of RERA is bringing about business transparency as well as significantly reducing the number of consumer complaints across the nation. One must not get lured by lucrative deals alone, offered by the developers during these challenging times, instead, they must assess the pros and cons and go for a more trusted name in the market. The NRI class has also communicated a great sense of interest in Indian real estate with trusted developers across different markets.
Low Home Loan Interest Rates:
The reduction in interest rates has paved the way for prospective homebuyers to invest in properties of their choice. Certain banks are offering minimum interest rates as low as 6.70%.
The recently announced stimulus package put forward by Finance Minister Nirmala Sitharaman will act as a backbone in the revival of the real estate sector. The impetus will provide demand booster for residential real estate and income tax relief to the developers as well as homebuyers. Under Section 43CA, Income tax relief will be provided to 20% of the differential between circle rate and agreement value increased from 10% for the period from the date of the announcement to 30th June 2021. This will apply to the primary sale of residential units of value up to Rs 2 crore.
An additional outlay of Rs 18,000 crore under PM Awaas Yojana (Urban) for FY21 will help in the construction of 12 lakhs houses and completion of 18 lakhs houses. The continuous efforts towards infusing liquidity through special schemes for NBFC/HFC will support the housing sector to tide over the liquidity crisis. It will also give support to the construction & infrastructure through relaxation of Earnest Money Deposit (EMD) & performance security on government tenders.
Key Takeaways
- Gradual recovery in sales of housing after lockdown relaxation started in June 2020.
- Besides end-users, NRIs, millennials and working women are choosing to purchase homes.
- Preference for ready to move in properties built by credible developers; demand for larger homes with open spaces and self-contained projects
- Best time to purchase homes due to the low interest rates, flexible payments and right prices.
- Pandemic has led to redesigning the homes.
- Owing to overall economic growth, developers are cautiously positive about recovery.
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